Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q3 2024 Earnings Presentation
21 slides from Apollo Commercial Real Estate Finance's earnings presentation, Oct 31, 2024
Slide 1: Q3 2024 Financial Results
Exhibit 99.2 Q3 2024 Financial Results Apollo Commercial Real Estate Finance, Inc. October 30, 2024 Unless otherwise noted, information as of September 30, 2024 It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in t
Slide 2: Forward Looking Statements and Other Disclosures
Forward Looking Statements and Other Disclosures This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be c
Slide 3: Q3 Summary Results
Q3 Summary Results ➢ Net income available to common stockholders of ($95) million, or ($0.69) per diluted share of common stock – Includes a $128 million realized loss recorded on the extinguishment of a commercial mortgage loan secured by a healthcare portfolio in Massachusetts (“Massachusetts Heal
Slide 4: Per Share Overview
Per Share Overview 6 1,5,(a) Book Value per Share Distributable Earnings per Share 1,5,(a) Specific CECL Allowance Distributable Earnings per Share BVPS Post-General CECL Allowance & Depreciation ▪ ▪ Quarterly Dividend ▪ Realized Loss General CECL Allowance & Depreciation ▪ 6 Book Value per Share Ro
Slide 5: Portfolio Activity & REO Overview
Portfolio Activity & REO Overview Q3 Loan Portfolio Activity YTD Loan Portfolio Activity ($ in mm) ($ in mm) 4 4 8 7 (b) 8 7 ➢ $460 million of new loan originations, across three first mortgages REO ➢ Brooklyn Development: 51-story multifamily tower component topped out in July 2024, and interior fi
Slide 6: Q3'24 Loan Originations & Repayments
Q3’24 Loan Originations & Repayments (a) New Originations Repayments by Property Type Total Repayments Full Repayments $953 Million $808 Million/7 Loans Asset Photos Q3 repayments exceeded 1H’24 by $194 million Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan (b) Loan Size $149 million
Slide 7: Loan Portfolio Overview
Loan Portfolio Overview Carrying Value/ W/A Unlevered All-in Yield 9 Loan Position 3,9,(a) Number of Loans on Loan Portfolio 95% First Mortgage $7.8 billion/45 Loans 8.5% W/A Remaining Fully-Extended 9 (b) W/A Portfolio Risk Rating W/A Portfolio Loan-to-Value 9,10 Term 3.0 58% 2.5 Years 9 (e) 9 Coll
Slide 8: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) United New Other (b) 7 Property Type Kingdom York City Europe Southeast West Midwest Northeast Other Total Office $643 / 8% $472 / 6% $501 / 6% - - $176 / 2% - - $1,792 / 23% Hotel 7 / 0% 245 / 3% 508 / 6% 450 / 6% 208 / 3% 57 / 1% 9 / 0% 137 / 2% 1,621 / 2
Slide 9: Office Loan Portfolio Overview
Office Loan Portfolio Overview (a) 9 (b) Number of Loans Carrying Value First Mortgage W/A Loan-to-Value 51% 10 Loans $1.8 Billion 100% rd Loans with 3 Party Largest commitment 100% 9 W/A Risk Rating (c) Subordinate Debt leased to credit tenant 2.9 3 Loans $673 million 9 9 9,10 Origination Vintage L
Slide 10: Senior Loan Portfolio (1 of 3)
Senior Loan Portfolio (1 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 10 Location Office Property Type Date Cost Commitments Loan Subordinate Debt Maturity (a) London, UK Loan 1 Office 02/2022 $461 $209 Y 02/2027 Manhattan, NY Loan 2 Office 03/2022 249 17 Y 04
Slide 11: Senior Loan Portfolio (2 of 3)
Senior Loan Portfolio (2 of 3) Origination Amortized Unfunded Construction 3rd Party Fully-extended 10 Location Retail Property Type Date Cost Commitments Loan Subordinate Debt Maturity Various, UK Loan 20 Retail 04/2022 $510 $24 04/2027 Various, UK Loan 21 Retail 10/2021 435 - 10/2026 Manhattan, NY
Slide 12: Senior Loan Portfolio (3 of 3)
Senior Loan Portfolio (3 of 3) Origination Amortized Unfunded Construction 3rd Party Fully-extended 10 Location Industrial Property T ype Date Cost Commitments Loan Subordinate Debt Maturity Various, Sweden Loan 34 Industrial 03/2021 $243 - 05/2026 Y Various, UK Loan 35 Industrial 08/2024 128 127 08
Slide 13: Subordinate Loan Portfolio
Subordinate Loan Portfolio ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 10 Location Property Type Date Cost Commitments Loan Subordinate Debt Maturity 13 Manhattan, NY Loan 42 Residential 06/2015 $273 - 11/2025 13 Loan 43 Residential 08/2022 74 - 11/2025 Manhattan,
Slide 14: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) No Corporate Debt ~71% Weighted Average Available (e) Maturities until May 2026 Advance Rate 14 15 (a),(b),(c) 3.5x Debt to Equity Ratio 1.3x Fixed Charge Coverage Secured Debt Arrangements $5
Slide 15: Mitigating Foreign Exchange Risk
Mitigating Foreign Exchange Risk ARI is well-positioned for fluctuating foreign exchange rates due to several risk mitigating steps we have taken to structure and fund our non-US loan portfolio and associated secured financing facilities Foreign Exchange Rate Change (Local/USD) % FX Change YoY GBP:
Slide 16: Loan Maturities and Future Funding Profile
Loan Maturities and Future Funding Profile 10,16,17 Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity ($ in mm) $686 $652 $632 $521 $80 $27 $33 $15 $2 $0 a 2024 2025 2026 2027 2028 & Beyond (b) (b) Fully-Extended Maturities (Net Equity) Expected Net Future Fundings 18,(c) Net
Slide 17: Appendix
Appendix - Consolidated Balance Sheets - Consolidated Statement of Operations - Reconciliation of GAAP Net Income to Distributable Earnings 17
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands - except share data) September 30, 2024 December 31, 2023 Assets: Cash and cash equivalents $194,287 $225,438 (a)(c) 7,456,389 7,925,359 Commercial mortgage loans, net (b)(c) 374,222 432,734 Subordinate loans, net (d) Real estate owned, held for investment
Slide 19: Consolidated Statement of Operations
Consolidated Statement of Operations ($ in thousands - except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net interest income: Interest income from commercial mortgage loans $179,921 $180,441 $543,025 $520,712 Interest income from su
Slide 20: Reconciliation of GAAP Net Income to Distributable Earnings
1 Reconciliation of GAAP Net Income to Distributable Earnings ($ in thousands - except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 1 Distributable Earnings : 2024 2023 2024 2023 ($94,617) $43,003 ($169,492) $2,383 Net income (loss) available to common s
Slide 21: Footnotes
Footnotes 1. Distributable Earnings is a non-GAAP financial measure that we define as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting and settlement of award
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